Nvidia Reports Strong Q3 Results, Shares Drop

Nvidia reported robust earnings for the second quarter of fiscal 2025, with revenue reaching $30 billion and net income of $16.6 billion, both surpassing analysts' expectations. Despite this impressive performance, shares fell approximately 4-5% in after-hours trading, reflecting investor disappointment amid high growth expectations. The company announced a strong revenue forecast for the upcoming quarter, anticipating around $32.5 billion, bolstered by robust data center demand and the upcoming Blackwell AI chip. CEO Jensen Huang highlighted ongoing strong demand for the Hopper architecture and the anticipated impact of Blackwell, which is expected to generate significant revenue. Nvidia also approved a $50 billion share buyback plan to bolster shareholder value. Analysts warn that any signs of waning AI demand could trigger further sell-offs as Nvidia's stock remains historically high compared to earnings.